HCL Tech Q1 Review - Growth Optionality At Attractive Valuation: Motilal Oswal

HCL Tech Q1 Review - Growth Optionality At Attractive Valuation: Motilal Oswal

The HCL Technologies LTD. Jigani campus in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

HCL Technologies Ltd. delivered a growth of 0.7% QoQ (constant currency), below our estimate of 2.4%, led by weak growth in IT Services (up 0.5%) and products and platforms (down 1%), but partially compensated by better than expected engineering research and development (up 4.5%).

Excluding the impact of a one-time bonus in Q4 FY21, Ebit margin was down 80 basis point QoQ and missed our estimate by 130bp due to Covid-19 related expenses of 90bp.

The management reiterated its double-digit U.S. dollar revenue growth guidance and Ebit margin band of 19-21% for FY22.

HCL Technologies' new deal total contract value stood at $1.7 billion (up 37% YoY, eight large deals) in Q1 FY22.

Click on the attachment to read the full report:

Motilal Oswal HCL Technologies Q1FY22 Result Update.pdf
Read Document

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

lock-gif
To continue reading this story
Subscribe to unlock & enjoy all
Members-only benefits
Still Not convinced ?  Know More
Watch LIVE TV , Get Stock Market Updates, Top Business , IPO and Latest News on NDTV Profit.
GET REGULAR UPDATES